Direct Deposit

What it is:

Direct deposit refers to the electronic transfer of a cash payment into the recipient's bank account.

How it works (Example):

Direct deposit is a method of payment where a paying party, such as an employer or government agency, electronically transfers a payment in cash from its bank account into the bank account of the payee. Salaries and tax refunds are examples of payments commonly made through direct deposit.

Why it Matters:

Directly deposited money "clears" automatically, that is, it is immediately available for withdrawal, and does away with the need for and inconvenience of a paper check.

CONTENT LIBRARY

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